2019

INDIAN REAL ESTATE A changing market dynamics

While the year 2018 has been a year of brisk activities in the Indian Real Estate sector, the

year 2019 is expected to bring in both challenging and opportunistic with upcoming elections,

changing dynamics of credit growth and focus on infrastructure improvement driving the

markets. The short term impact of elections in terms of slowdown of policy clearances and

infrastructure projects critical to real estate might affect the market sentiments, but stable

government at the Centre is expected to boost growth of the sector.

The NFDC crisis and lack of credit off take has been an area of concern for stakeholders in

the sector, but positive economic indicators with India's GDP growth rate pegged at 7.5%

and controlled inflation rate at 4.8% have kept the markets stable. The effort to continue this

momentum should be prioritized for all encompassing growths of this sector.

Last year market consolidation and adjusting to the new policy requirements became the

main focus of the development. The increased transparency, accountability and core

structural reforms have boosted ease of doing ranking of India and has created a conducive

business environment for both domestic and institutional investors. The enforcement of

RERA has phased out non serious players ensuring that only credible developers drive the

market. Further consolidation of the market is expected to continue in 2019 with established

names further capitalize on their brand.

Affordable housing and massive infrastructure augmentation by the Government of India

(GOI), including significant capital expenditure for roads, railways, development of smaller

airports and expansion of schools and hospitals are expected to drive Real Estate Market in

the future. Concepts such as co-working and co-living spaces have emerged as new market

segments for investments. The commercial market segment is expected to continue buoyant.

After being inferred industry status, Indian Warehousing and logistic market are seeing good

space transaction and investment. Residential and retail segment will continue the brisk

momentum. Overall 2019 is expected to be a good year for the Indian Real Estate sector.

Chairman, CIRIL

OUR SERVICES

INDIAN ECONOMY Looking ahead with hope in 2019

According to Moody's Investment Services, economic growth of approximately 7.5%

is expected for 2019 and will remain robust. The expected growth is reflective of

strong demand for goods and services and increasing industrial activity among the

eight core sectors: coal, crude oil, natural gas, refinery products, fertilizers, steel,

cement and electricity. India is expected to be the third largest consumer economy as

its consumption may triple to US$ 4 trillion by 2025, owing to shift in consumer

behaviour and expenditure pattern, according to a Boston Consulting Group (BCG)

report; and is estimated to surpass the USA to become the second largest economy

in terms of purchasing power parity (PPP) by the year 2040.

India's gross domestic product (GDP) is expected to reach US$ 6 trillion by FY27 and

achieve upper-middle income status on the back of digitization, globalization,

favorable demographics, and reforms.

India's revenue receipts are estimated to touch Rs 28-30 trillion (US$ 385-412 billion)

by 2019, owing to the Government of India's measures to strengthen infrastructure

and reforms like demonetization and Goods and Services Tax (GST).

The World Bank has stated that private investments in India are expected to grow by

8.8 per cent in FY 2018-19 to overtake private consumption growth of 7.4 per cent,

and thereby drive the growth in India's gross domestic product (GDP) in FY 2018-19.

India is expected to retain its position as the world’s leading recipient of remittances

in 2018, with total remittances touching US$ 80 billion, according to the World Bank’s

Migration and Development Brief.

India: Demand, Output and Process

Different Economic Indicators

Economic Restructuring and

Competitive Landscape

India ranks 58th, up five places from 2017 out of 140 economies, according to

the Global Competitiveness Report 2018 of the World Economic Forum. Further,

India’s rank in the World Bank’s Ease of Doing Business 2019 survey climbed 23

places to 77 among 190 countries surveyed, making it the only country to rank

among the top 10 improvers for the second consecutive year.

Modernizing public institutions have been high on the agenda of reforms in India

in recent years, and results are starting to show. The six reforms recognized in

this year’s report are starting a business, getting electricity, dealing with

construction permits, getting credit, paying taxes and trading across borders.

Market Drivers

URBANISATION

India’s urban

population as a

percentage of the

total population was

around 32.7 percent

in 2015 and is

expected to rise to

40.0 percent by

2030

GROWING

ECONOMY

The demand for

commercial

property is being

driven by the

country’s economic

growth

POLICY SUPPORT

Government

initiatives, urban

development policies

and programs

(Smart City, AMRUT)

are expected to

contribute to

demand for real

estate infrastructure

INCREASING

HOUSEHOLD

INCOME

India’s per capita

increasing year on

year, making an

investment in Real

Estate easier

EASIER

FINANCING

Easy availability of

project finance by

the Bank have

increased demand

for better and

affordable

infrastructure

INDIAN REAL ESTATEMoving towards transparent regime

The year 2018 was year of numerous policy

and statutory compliance for Indian Real

Estate. The big bang reforms such as RERA

and GST improved the transparency and

answerability in the sector have brought

about an imperative change in the tax,

regulatory and business environment,

thereby catching the attention of institutional

investors who are now looking at the Indian

real estate with renewed dynamism.

With affordable housing accorded

infrastructure status and announcement of

Credit Linked Subsidy Scheme (CLSS) has

benefited both buyers and developers. In

the long term, these reforms will have a

positive impact on markets. Today’s market

is very much steady for buyers; choices are

accessible, making it a good time to

capitalize on investment.

The Securities and Exchange Board of India

(SEBI) has given its approval for the Real

Estate Investment Trust (REIT) platform

which allows investors to invest in the Indian

realty industry. This would aid increase of

the cash flow in the sector and create

openings worth billions over the years.

Likewise, the liberalization of the FDI norms

will further improve the cash flow into the

sector and encourage a robust environment

In year 2019, investment scenario may

remain slow and stable owning to the

upcoming locations. Players will remain

conscious about investing in new

ventures. Completion of existing projects

will be prioritized.

Business models such as co-working

space have emerged as new market

segments. Overall, Commercial market

segment will continue to perform better

than retail and residential segments in

2019. Gross office space absorption in

2018 has grown by more than 20 percent

since last year owing to renewed interest

from banking tenants and further

expansion by technology companies.

Many developers plan to build affordable

housing, with residential units in the price

range of INR 1.5 – 3 mn (USD 21,000 –

42,000). This will target the lower and

upper middle income group.

Overall, in 2019 the market will continue

its steady run but at a slower rate. Even

with a rise in demand in most of the major

cities, the year-on-year price increase has

remained low, ranging between 0 – 2%

during the past years. We can expect a

similar trend in the coming years.

INDIAN REAL ESTATEMarket Size

Real estate sector in India is expected to reach a

market size of US$ US$ 1 trillion by 2030 from

US$ 120 billion in 2017 and contribute 13% of

the country’s GDP by 2025. Retail, hospitality

and commercial real estate are also growing

significantly, providing the much-needed

infrastructure for India's growing needs.

The Securities and Exchange Board of India

(SEBI) has given its approval for the Real Estate

Investment Trust (REIT) platform which will help

in allowing all kinds of investors to invest in the

Indian real estate market. It would create an

opportunity worth Rs 1.25 trillion (US$ 19.65

billion) in the Indian market over the years.

Private Equity and Venture Capital investments

in the sector have reached US$ 4.1 billion

between Jan-Nov 2018. Private Equity and

Venture Capital investments in the sector have

reached US$ 4.1 billion between Jan-Nov 2018.

Institutional investments in India’s real estate are

expected to reach US$ 5.5 billion for 2018, the

highest in a decade.

1660

120180

1000

0

200

400

600

800

1000

1200

2006 2010 2017 2020 E 2030 E

Real Estate Market Size USD Bn

Real Estate Market Size USD Bn

PO

LIC

Y O

VER

HA

UL 2

018

Affordable Housing Fund

Govt. has set up dedicated

Affordable Housing Fund under

National Housing Bank for

priority sector lending to build 1

Crore house in rural areas

under PMAY this year

Insolvency and Bankruptcy

Code 2018

This gave more power to

homebuyers by treating them at

par with banks and other

institutional creditors for

recovering dues from realty

firms that turned bankrupt

Enhanced Carpet Area for MIG

Houses

To attract buyers, The Govt. has

enhanced the carpet area of MIG

Houses from 120 sq.m to 160

sq.m under MIG – I category and

from 150 sq.m to 200 sq.m under

MIG – II category

Ease of Doing Business

India through its effort in

improving transparency has

climbed 23 places in World

Bank’s latest rankings and now

stands at 77th position among

190 nations boosting the

confidence of investors

Repo Rates

RBI hiked Repo Rates by 50

basis points during this year, a

back – to – back revision of 25

basis points in June and then in

August. This has a positive

impact on Markets.

Foreign Direct Investments

Govt. allowed 51% FDI in multi-

brand retail and 100% FDI in

single-brand retail under the

automatic route. It also plan to

tweak norms for retail trade in

similar lines to SEZ

FOREIGN DIRECT INVESTMENTIn Indian Real Estate

According to Department of Industrial Policy

and Promotion (DIPP), the total FDI

investments in India April-June 2018 stood

at US$ 12.75 billion, indicating that

government's effort to improve the ease of

doing business and relaxation in FDI norms

is yielding results.

Data for April-June 2018 indicates that

the services sector attracted the highest

FDI equity inflow of US$ 2.43 billion,

followed by trading – US$ 1.63 billion,

telecommunications – US$ 1.59 billion and

computer software and hardware – US$

1.41 billion. Most recently, the total FDI

equity inflows for the month of June 2018

touched US$ 2.89 billion.

The construction, development sector in

India has received Foreign Direct

Investment (FDI) equity inflows to the tune

of US$ 24.87 billion in the period April

2000-June 2018.

Moreover, no government approval will be

required for FDI up to an extent of 100 per

cent in Real Estate Broking Services.

Source: ibef, Dec 2017

0 2,000 4,000 6,000 8,000 10,000

Service Sector

Construction

Telecommunication

Computer (Hardware and Software)

Pharma

Automobile industry

Chemical (except fertilizer)

Power

Trading

Sector attracting highest FDI equity inflow in US$ mn

2018-19 (April to June) 2017-18 2016-17

Some of the major investments and

developments in this sector are as follows:

• New housing, launches across top seven

cities in India are expected to increase 32

per cent year-on-year by 2018 end to

193,600 units.

• In September 2018, Embassy Office Parks

announced that it would raise around Rs

52 billion (US$ 775.66 mn) through India’s

first Real Estate Investment Trust (REIT)

listing.

• New housing, launches across top seven

cities in India increased 50 per cent

quarter-on-quarter in April-June 2018.

• In May 2018, Blackstone Group acquired

One Indiabulls in Chennai from Indiabulls

Real Estate for around Rs 900 crore (US$

136.9 mn).

• In February 2018, DLF bought 11.76 acres

of land for Rs 15 billion (US$ 231.7 mn) for

its expansion in Gurugram, Haryana.

• In February 2018, Ikea announced its

plans to invest up to Rs 4,000 crore (US$

612 mn) in the state of Maharashtra to set

up multi-format stores and experience

centers.

.

FOREIGN INSTITUTIONAL INVESTMENTIn Indian Real Estate

Foreign Portfolio/Institutional Investors

(FPI/FII) have been one of the biggest

drivers of India’s financial markets and

have invested around Rs 12.51 trillion

(US$ 171.81 billion) in India between

FY02-18.

In 2018-19 (up to December 31, 2018),

FIIs have pulled Rs 94,070 crore (US$

13.48 billion) from the Indian financial

markets. Investments by foreign portfolio

investors (FPIs) in Indian capital markets

have reached Rs 6,310 crore (US$ 904.11

mn) in November 2018 (up to November

22, 2018). Embassy Office Parks filed the

papers for India’s first Real Estate

Investment Trusts (REIT) paving way for

more FII investment in coming years.

Institutional investments in real estate

sector touched $5.5 billion in 2018, the

highest since 2009, on the back of

transformative policy reforms and a

growing risk appetite of foreign and

domestic institutional investors. Buoyed by

strong support from the government, FII

investments have been strong and are

expected to continue to improve going

forward. Further, in a move to encourage

more investment, the Securities and

Exchange Board of India (SEBI) has

relaxed norms for registered FPIs in India.

Government/Regulatory Initiatives

• Securities and Exchange Board of India

(SEBI) on December 04, 2018 has

proposed direct overseas listing of Indian

companies and other regulatory changes.

• In September 2018, SEBI has relaxed the

Know-Your-Client (KYC) requirement for

Foreign Portfolio Investors (FPIs).

• In September 2018, SEBI allowed Bombay

Stock Exchange (BSE) and National Stock

Exchange (NSE) to start commodity

derivate segments.

• SEBI has also allowed foreign entities to

participate in the commodity derivatives

segment of Indian stock exchanges, to

help them hedge their exposures. It has

also proposed to allow Non Resident

Indians (NRIs) to invest through FPI route

after meeting specific KYC norms.

• In August 2018, SEBI reduced the timeline

for public issue of debt securities from 12

days to six days.

• Foreign Portfolio Investors are also allowed

to invest up to 25 percent in Category III

Alternative Investment Funds (AIF) in India.

Different types of funds such as hedge

funds, Private Investment in Public Equity

(PIPE) funds, etc. are operating in India as

Category III AIFs.

• Investments by FPIs have also been

allowed in Real Estate Investment Trusts

(REITs) and Infrastructure Investment

Trust (InvITs).

Investment by Foreign Institutional Investors in India

PRIVATE EQUITY INVESTMENT

The Indian PE landscape developed significantly

over the last 10 years, and is in a considerably

mature phase now with two full investment

cycles behind it.

In 2018, investments increased by 35% in value

terms compared to 2017 (US$35. 1 billion vs

US$26. 1 billion in 2017) and deal volume

increased by 28% (761 deals compared to 594

deals in 2017). There were 76 deals of value

greater than US$100 mn in 2018, aggregating to

US$25. 9 billion and accounting for 74% of total

PE/VC investments made in 2018.

Financial Services continued to be the top sector

receiving US$7. 5 billion in investments across

141 deals followed by Real Estate (US$4. 5

billion across 49 deals) and E-commerce (US$4.

3 billion across 83 deals).

PE/ VC INVESTMENTS AND EXITSInvestments Exits

Year

No. Of

Deals Amount $ (M) Year

No. Of

Deals

Amount $

(M)

As % of

Investment

2007 532 14,567 2007 152 3,865 26.5%

2008 487 10,028 2008 88 1,807 18.0%

2009 310 3,974 2009 132 2,358 59.3%

2010 421 8,382 2010 204 6,310 75.3%

2011 549 10,605 2011 144 3,814 36.0%

2012 535 9,549 2012 170 5,574 58.4%

2013 497 7,645 2013 160 4,880 63.8%

2014 566 11,239 2014 228 5,314 47.3%

2015 785 16,608 2015 276 9,767 58.8%

2016 672 15,329 2016 238 8,123 53.0%

2017 639 24,700 2017 259 12,500 50.6%

2018 761 35,100 2018 260 26,000 35.0%

Source: Venture Intelligence

2018 was the best year ever for exits. In

2018, PE/VC exits, at US$26 billion,

increased by almost 100% compared to

2017 and are almost equal to the value of

exits in the previous three years

combined.

The sharp rise was mainly on account of a

single large deal that saw Walmart acquire

controlling stake in Flipkart for US$16

billion from a clutch of investors including

Softbank, Tiger Global and others. This is

the largest deal in the Indian PE/VC

market ever.

E-commerce (US$16. 4 billion across 10

exits), Technology (US$1. 8 billion across

24 exits), Financial Services (US$1. 5

billion across 34 exits) were the top

sectors for PE/VC exits in 2018.

Largest PF Investment - 2018

Company Investor Amount

Toll Road Project Macquarie $ 1,487 M

UPL TPG, ADIA $1,200 M

HDFC KKR, GIC, Others $1,062 M

Swiggy Nasper, Tencent, Others $1,000 M

OYO SoftBank Corp, Others $1,000 M

Vivtera Warburg Pincus $1,000 M

RCOM Enterprise Bix I-Squared Capital $1,000 M

Star Health Insurance WestBridge, Rare Enterprises, Others $1,000 M

Indian Real Estate

Macro Market Trends

• Office space leasing touches a record high, at

46.8 mn sq ft in 2018 to 15% increase in

transactions Y-o-Y.

• Rents show appreciation in most major markets

with growth of 5% Y-o-Y

• At a pan-India level, total office stock across the

seven major cities is forecast to reach around 600

mn square feet by the end of 2019

• Co-working has emerged as a major driver in

most micro-markets with 15% share in space

absorption.

• Vacancy witnessed a marginal improvement in

the last year, settling at approximately 12% at the

end of 2018

Commercial Office space

• The Indian retail estate is expected to witness

addition of 13.5 mn sq ft of mall in 2019 across

major cities apart from tier II and III cities.

• Shopping mall stock is projected to be around 20

mn square feet in next 3 to 4 years, of which

around 11 mn square feet of supply are expected

in 2018

• Fashion, F&B and entertainment dominated

leasing scenario

Retail Sector

• In 2018, the total absorption in Industrial and

Warehousing segment, 23 mn sq.ft of space.

• The warehouse industry in India is worth INR 560

billion and is growing at a rate of 10- 12 percent

every year.

• E-commerce sector continues to be the major

demand drive in this segment

• With the implementation of the GST reputed

developers are entering warehousing sector.

Industrial and Warehousing sector

MUMBAI REAL ESTATE TRENDS

Mumbai is India's largest city (by

population) and is the financial and

commercial capital of the country.

It is also one of the world's top ten

centres of commerce in terms of

global financial flow, accounting

for 6.16% of the total GDP, 25% of

industrial output, 70% of maritime

trade in India. The key sectors

contributing to the city's economy

are: finance, gems & jewellery,

leather processing, IT and ITES,

textiles, and entertainment.

Nariman Point and Bandra Kurla

Complex (BKC) are Mumbai's

major financial centres.

Commercial Retail Ind.& Warehousing

Statistics

Area

(Metropolitan

Region

4,355 km2

(1,681.5 sq mi)

Population

(Census 2011)

18,414,288

20,748,395

(Extended UA)

GDP (PPP) $310 billion

Mumbai Commercial

Real Estate Trends

IT-BPM continued to witness strong demand

with a 27% share. The major transactions

(greater than 100,000 sq. ft.) seen during

the quarter were Accenture in Eastern

Suburbs, We Work in Thane-Belapur micro

market and Google in SBD (BKC) micro

market.

Mumbai witness supply of around 3.5 mn

sq. ft in the year 2018. Demand is expected

to improve, backed by leasing activity in

select corridors such as Thane-Belapur

Road and the Malad-Goregaon stretch

where a healthy supply pipeline is

anticipated during 2019-2020. Rental prices

largely remain unchanged in 2018.

Mumbai office market saw total absorption of

around 4.8 mn sq. ft in the year 2018.

Leasing activity was stable across all micro-

markets of Mumbai in the year 2018. Co-

working has emerged as a new demand

segment in Mumbai with frantic expansion by

new and established players. Almost 15% of

the space absorption in the commercial

market are by Co-working space.

Overall, Powai, Vikhroli, Kurla, Andheri and

Goregaon remained a favored investment

destination accounting for 60% of total

absorption. Navi Mumbai and BKC, with a

15% share each, while Worli, Prabhadevi and

CBD represented the remaining 9% of gross

absorption.

Major Deals in Mumbai Commercial Market - 2018

CLIENT Building Name Area (SF) Location Lease/ Sale

Accenture Godrej IT Park 2,50,000 Vikhroli Lease

Trent Ltd. New Cuff Parade 1,20,000 Wadala Lease

Trent Ltd. New Cuff Parade 1,20,000 Wadala Lease

Google India Private Ltd. First International Financial Centre 1,00,000 Bandra Lease

Inox Skycity Mall 1,00,000 Borivali Lease

We Work India Zenia 94,200 Thane Lease

Nirlon Ltd. Nirlon Knowledge Park 78,429 Goregaon Lease

Puma Energy Processing Godrej BKC 71,262 Bandra Lease

Dusk Properties P.Ltd. I Think Techno Campus 61,604 Thane Sale

ICICI Lombard General Insurance

Company Ltd.247 Park 35,690 Vikhroli Lease

Access healthcare services P. Ltd. Empire Tower 34,100 Airoli lease

Smart work Business Centre P. Ltd. Fleet House 26,976 Andheri Lease

EFC Ltd. Reliable Plaza 21,762 Rabale Lease

Times of India Wallstreet 20,000 Andheri Lease

International SOS Services India P. Ltd. The Qube 15,900 Andheri Lease

Tata Asset Management Ltd. Parinee Crescenzo 15,028 Bandra Lease

Phonepe Private Ltd. Boston House 13,000 Andheri Lease

Vijay Holdings MBC Infotech Park 10,402 Thane Sale

Rental Trends Deals in Mumbai Commercial Market in INR/sq.ft/month

Area 2016 2017 H1 2018 H2 2018

Worli/Prabhadev 100 -190 100-180 125-190 110-190

Lower Parel 90-180 90-180 110-180 100-190

BKC 165-285 155-275 150-300 150 -300

Kalina 100-175 100-175 125-200 125-250

Goregaon / JVLR 90-110 90-110 80-125 80-125

Andheri East 70-140 70-140 60-145 60-155

Malad 75-100 75-100 70-120 70-120

Powai 120-200 125-225 110-145 110-160

Navi Mumbai 40-80 40-80 40-75 40-90

Thane / LBS 60-120 65-125 60-125 60-125

0

1

2

3

4

5

6

2014 2015 2016 2017 2018

Demand and Supply in Mumbai Commercial market in mn sft

Supply Demand

Mumbai Retail

Real Estate Trends

In 2019 is expected to see sustained

demand across malls in particularly in

Lower Parel and the main street on Linking

Road. Prominent main street locations like

Bandra, Juhu, Powai etc. continue to see

good inquiries from retailers and are

expected to see transaction activity going

forward as well.

Rental prices will largely remain

unchanged in 2019. Selected main street

locations are expected to see rental

growth in the near future as they

continue to see sustained demand from

retailers.

The Mumbai retail market witnessed supply of

nearly 2 mn sq. ft of leasable space. Due to

healthy leasing activity, the total absorption

was around 1.2 mn sq.ft.

The vacancy level remained low at 13.5% in

Mall segment. Retail rentals remained stable

across most micro markets. Key mall

transactions included Westside and Splash

leasing 37,000 SF and 11,000 SF,

respectively - both in Phoenix Market City in

Kurla and Miniso leasing 5,500 SF in Inorbit

Mall, Vashi. F&B remained the main demand

driver in high street locations. Around 1 mn

sq.ft of Mall space is expected to be available

in 2019. This is expected to drive the retail

demand.

Significant Leasing Transaction in Retail Market- 2018

Property Location Tenant Square feet Lease/ Sale

Pheonix Market City Kurla Westside 37,000 Lease

Inorbit Mall Vashi Miniso 5,500 Sales

The Point Bandra IDFC Bank 2,000 Lease

Business Square Andheri Vijay Sales 7,512 Sales

Shree Ganesh Vashi Kaya Skin 2,500 Lease

Vivarea Mahalaxmi Nature's Basket 2,000 Lease

MICASA Bldg Bandra - West Starbucks 3,000 Lease

Maker Tower Cuffe Parade Andhra Bank 3,004 Lease

Parul Juhu Theobrama 2,200 Lease

Major Upcoming Projects in 2018 Location Year

Maker Maxity Mall BKC Q1 2019

Oberoi Oasis Mall Worli Q4 2019

Reliance Mall BKC 2020

Prime Retail Rents in Mumbai in INR/sq.ft/month

2016 2017 2018

Main Street

Linking Road 350 - 650 350 - 650 350-800

Kemps Corner 350 -450 350 -450 350-600

Breach Candy 375 - 500 375 - 500 350-600

Colaba Causeway 300-600 300-600 300-600

Fort Fountain 250-450 250-450 250-550

Lokhandwala Andheri 225-350 225-350 250-500

Borivali LT Road 250-400 250-400 250-500

Chembur 250-350 250-350 250-500

Vashi 275-400 275-400 250-500

Thane 150-250 150-250 125-400

Malls

Lower Parel 250-450 250-450 400-600

Link Road (Andheri W) 500 500 200-400

Malad 350 350 150-400

Goregaon 350 350 150-400

Ghatkopar 350 350 150-300

Bhandup 175 175 125-275

Mulund 200 200 200-400

Vashi 350 350 300-500

Thane 300 300 125-300

Mumbai Industrial and

Warehousing Trends

Major lease transaction witnessed are;

Pepper fry (260,000 sq. ft.) and Hopscotch

(120,000 sq. ft.) at Bhiwandi. Jaguar

(125,000 sq. ft.), at Panvel, and Jindal

Steels (50,000 sq. ft.) at Taloja. Linde

Group (11,000 sq. ft.) at Mahape and NRB

Bearings (20,000 sq. ft.) at Rabale.

Due to the strong demand levels, rental

values increased across most micro

markets. However, high costs of land and

restricting in land usage (mostly in the

green zone) have restricted the

development of warehouses.

Industrial and warehousing segment will

continue its robust performance in 2018.

There was a strong increase in demand for

warehousing space across the Mumbai

particularly in in Bhiwandi, Mankoli and

Padgha along NH 3 and State Highway 35

(SH 35). Demand for industrial space

picked up with leasing activity

concentrated across the Trans Thane

Creek (TTC) industrial area.

E-commerce players and 3PL companies

continued to be the prominent occupiers of

warehousing space in the region,

accounting for 70% of the total space take-

up during 2016. Engineering and

manufacturing firms and electronics

companies were other major demand

drivers.

Mumbai Industrial and Warehousing Trends

Submarkets Land rates in INR Mn/acreIndustrial Rents

INR/sft/month

Warehousing Rents

INR/sft/month

Bhiwandi 6-9 15-25 9 - 25

Thane Belapur Road 25-35 35-45 20-30

Taloja Industrial Estate 20-30 30-40 20-35

Panvel 25-35 40-60 14 - 30

JNPT & Uran Road 8 -15 25-40 22 - 35

Rasayani Patalganga 8-12 22-25 14 - 20

Pen-Khopoli Road 8-12 22-25 14- 20

15

Significant Leasing Transaction in Industrial and Warehousing in 2018

Property Location Tenant Square feet Lease/ Sale

Shubham Space Bhiwandi Hitachi 1,00,000 Lease

Antariksh Bhiwandi 20 Cube 5,50,000 Lease

Sahib Warehousing Bhiwandi Big Basket 1,00,000 Lease

Saidhara Complex Bhiwandi Haier India 30,000 Lease

BGR Bhiwandi Yusen 2,00,000 Lease

BGR Bhiwandi DHL 2,50,000 Lease

BGR Bhiwandi Kuenhe Nagel 2,50,000 Lease

Shubham Space BhiwandiAvvashya CCI

Supply Chain1,00,000 Lease

Sagar Complex Bhiwandi Dexters Logistics 12500 Lease

Global Infra Bhiwandi CITI Solutions 3,00,000 Lease

NCR DELHIREAL ESTATE TRENDS

The National Capital Region

(NCR) in India is the designation

for the conurbation or

metropolitan area which

encompasses the entire National

Capital Territory of Delhi, which

includes New Delhi and urban

areas surrounding it in

neighbouring states of Haryana,

Uttar Pradesh and Rajasthan.

NCR is India's largest and one of

the world's largest urban

agglomeration with a population

of over 47,000,000 at the 2011

Census.

Commercial Retail Ind.& Warehousing

Statistics

Area 54,984 km2

(21,229 sq mi)

Population

(Census 2011)

46,069,000

GDP (PPP) $293.6 billion

NCR Delhi Commercial

Real Estate Trends

Rental remained stable in most micro

markets. New Delhi and NOIDA

witnessed marginal appreciation in few

commercial pockets due to restrictive

supply while Gurugram saw a correction

of base price in few locations.

We expect the commercial office

market to remain stable and

favourable towards developers

owning to the new supply that would

be available by H2 2019. Vacancy

levels are expected to increase

further. Rental prices will largely

remain unchanged in 2019. Overall

commercial markets will remain

robust till year end 2020.

NCR Delhi office real estate segment emerged as

a second most prominent market in terms of space

demand with around 9.5 mn sq.ft of space leased

out in the year 2018. Gurugram continue to remain

the most preferred market accounting for 60% of

the total absorption. The IT-ITeS accounted for

50% of leasing volume followed by Engineering

and Manufacturing, Banking, Financial Services

and Insurance (BFSI) sector.

NCR Delhi witnessed supply of around 4.8 man sq

ft of Grade A office space in 2018 as opposed to

3.5 man sq ft in 2017. Around 15 men sq.ft of office

space is in different stages of construction with

Gurugram accounting for 9 mn sq.ft of future

supply. This is expected to keep the vacancy rates

as high as 34% all across the micro-markets.

17

Major Deals in Commercial Market - 2018

CLIENT Building Name Area (SF) LocationLease/

Sale

HDFC Ergo Eros Corporate tower 11,000 Nehru Place Lease

Mosiac Digital Building No. 17 15,000 Okhla Phase 3 Lease

Dr. Oatker Building No. 211 14,500 Okhla Phase 3 Lease

Hero Fincorp A-44 80,000 Mohan Co-operative Lease

DCM Sriram Bharti Worldmark 50,000 Aerocity Lease

TVS Logistics B-1/J-1A 12,000 Mohan Co-operative Lease

widex A-25 10,000 Mohan Co-operative Lease

Data Flow Services Prius Global 25000 Sector-125, Noida Lease

Vivo India 30000 Sector-59, Noida Lease

Mastech Digital ETT-2 50000 Sector-132, Noida Lease

Intergreon Tech Boulevard 20000 Sector-127, Noida Lease

ACS Group Arihant Tower 60000 Sector-126, Noida Lease

Pragyawan Group B-12 10000 Sector-1, Noida Lease

Eccosphere Coworking Pvt. Ltd B-61 & B-70 25000 Sector-67, Noida Lease

FabAlley C-5 25000 Sector-1, Noida Lease

Office Beanz (Coworking)5th & 9th Floors, Unitech

Cyber Park, Tower C54,000 Sector 39, Gurugram Lease

Sita Aeronotics ASF Towers 70,000Udyog Vihar -

4,GurugramLease

Fujifilm Unitech Cyber Park 25,000 Sector - 39, Gurugram Lease

Biba Capital Cyber Scape 54,000 Extn. Golf Course Road Lease

Tech Mahindra Capital Cyber Scape 1,25,000 Extn. Golf Course Road Lease

Wework (Coworking) Galaxy Hotel 1,00,000 NH-8 Lease

Wework (Coworking) Forum 2,84,000DLF Cyber City, Phase

III Lease

Mobikwik Good Earth Business Bay 35,000 Extn. Golf Course Road Lease

SE2 Brookfield Sez, Tikri 57,000 Sector 48 Lease

Innov8 (Coworking) Orchid Centre 40,000 Golf Course Road Lease

Gohive (Coworking) Technopolis 12,000 Golf Course Road Lease

Garage Society (Coworking) Plot No. 270 1,25,000 Phase 2, Udyog Vihar Lease

SE2 Brookfield Sez, Tikri 57,000 Sector 48 Lease

CventBrookfield Sez,

Dundahera90,000 Old Delhi Gurgaon Road Lease

Spark Minda Plot No. 404-405 30,000 Phase 3, Udyog Vihar Lease

Urbanclap Plot No. 416 35,000 Phase 3, Udyog Vihar Lease

Optimint Plot No. 270 30,000 Phase 2, Udyog Vihar Lease

Yatra.com Plot No. 272 80,000 Phase 2, Udyog Vihar Lease

0

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2014 2015 2016 2017 2018

Demand and Supply in commercial Market of NCR in mn

sft

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Delhi Gurugram NOIDA

Average Rental Trends in NCR-Delhi Commercial Market in INR/

sq.ft/ month

2016 2017 2018

NCR Delhi Retail

Real Estate Trends

Italian luxury fashion retailer, Love

Moschino, launched its flagship store in the

city in DLF Promenade mall, while Korean

retailer, Ximi Vogue made its foray in Delhi

NCR with a store in the Kamla Nagar high

street. Robust demand and limited

availability led to rentals appreciation by 3%

- 5% of the main street locations.

Retail markets of NCR Delhi are expected

to witness sustained demand for quality

retail space in 2019. An additional 2 ms

of supply are likely in H2 2019, a

substantial part of which is released and

finding healthy traction from retailers.

NCR - Delhi Retail market witnessed healthy

transaction in the year 2018 with total leasing of

1.5 men sq.ft. Delhi NCR recorded new mall

supply of 150,000 SF in Sector 29, Gurugram –

Tata Trilium - the only addition of mall space in

2018. Limited availability of quality space and

corresponding low demand resulted in deferment

of mall developments. Apparel and lifestyle

segments where the predominant demand driver.

In 2018, mall rentals remained stable across

submarkets. Apparel and lifestyle retailers like

Central, Max, Forever 21, Mango, W, Frontier

Raas leased spaces in malls, while F&B brands

like Starbucks, Chaayos, Nik Baker’s expanded

their retail footprint in main streets.

Significant Leasing Transaction in Retail Market

Property Location Tenant Square Feet

Defense Colony Defence Colony Dominos 2,000

Main Market ModelTown UCB 1,200

GK 1 M-block GK MINI Su 6,000

Sec 3 Rohini Cantabil 1,400

BOI Khan Market Hamleys 750

Main Market Sarojni Nagar Peter England 850

Jawahar Rd Kamla Nagar BlackBerrys 1,000

Dwarka Sec 5 Dwarka Sec 5 Kiasa 250

Jwalaheri market Pachim Vihar MINI SU 1,500

Main Market Rajouri Garden MINI SU 5,000

M Block GK 1 Delhi Marks & Spencer 1,200

Khan market Khan market Delhi Marks & Spencer 1,000

D Block CP Delhi Oneplus 3,600

Kamla Nagar Kamla Nagar H & M 6,000

Vikas Marg, next to nexa Showroom Vikas Marg FBB 8000

Jwalaheri market Pachim Vihar Vision Express 1400

NCR Delhi Markets 2015 2016 2017 H1/18 H2/18

Khan Market 1250 1250 1350 1375 1375

South Extension I&II 755 755 770 775 775

Connaught Place 810 810 820 825 825

Greater Kailash I, M Block 555 555 560 570 570

Rajouri Garden 210 210 215 225 225

Karol Bagh 380 380 390 400 400

Kamla Nagar 455 455 455 455 455

DLF Galleria (Gurgaon) 705 705 705 710 710

Sector 18 (NOIDA) 230 230 230 230 230

South Delhi 505 505 505 515 515

West Delhi 330 330 330 330 330

Gurgaon 380 380 380 380 380

NOIDA 385 385 385 385 385

Ghaziabad 210 210 210 210 210

NCR Delhi Industrial and

Warehousing Trends

Rental values in Delhi witnessed a

growth of 5-7% during 2017 due to

sustained interest from 3PL and e-

Commerce players. In notable

transaction, approx. 2,70,000 sq. ft.

Was leased by Flipkart at Tauru Road

and Hero Motor Corp leased 1,00,00

sq. ft near Jamalpur, Gurgaon

Industrial and warehousing will be

the major demand drivers in the

Delhi NCR market with sustained

demand from FMCG, 3PL and e-

Commerce players.

NCR Delhi is one of the largest warehousing

nodes in India due to the presence of large

consumer and manufacturing base.

Leasing activity remained robust in the NCR,

with close to 3 mn sq. ft. Of modern

warehousing space being leased across the

region. Demand continued to shift towards

modernized Pre-engineered Building (PEB)

facilities along the NH-8 in areas such as

Pataudi, Tara Road and Binola, followed by the

industrial areas of Mundka (Delhi), Dadri

(Ghaziabad) and Greater Noida. E-commerce

continues to be the main demand drivers.

19

Significant Transactions in Industrial and warehousing Market 2018Property Location Tenant Area in sq.ft

Warehouse Sohna Road,Gurgaon Udaan 80,000

Warehouse Bhora kalan(Gurgaon ) VRL Logistics 2,00,000

Warehouse Tauru Road (Gurgaon) Delivery 90,000

Warehouse Tauru Road (Gurgaon) Amazon 20,000

Warehouse sihi Gurgaon(Gurgaon) Royal enfield 20,000

Warehouse Khaintawas (Gurgaon ) Spencers 58,000

Warehouse Faridabad Emirates 10,000

Warehouse Piyala road (Faridabad) Proconnect 91,500

Warehouse Palwal (Haryana) Hellman logistics 90,000

Warehouse Tauru Road (Gurgaon) Apollo Tyres 90,000

Warehouse Kataria chowk (Gurgaon) Udaan 18,000

Warehouse Rajokri (Delhi) Udaan 38,000

Warehouse Faridabad Udaan 22000

Warehouse ecotec-2 Noida Maintu 21000

Warehouse narsinghpur Udaan 12000

Warehouse Ghaziabad LG 85,000

Warehouse Ghaziabad Yusen logistics 52,000

Warehouse Ghaziabad TVS Logistics 33,000

Warehouse NH-24 Lal khaw(Gahziabad) Metro 50,000

Warehouse Firni Road, Mundka Britannia 1,07,000

Warehouse Hiran Kudna, Mundka Blue Dart 22,000

Warehouse UER II, Mundka Safari 22,000

Warehouse Mundka Ecom Express 18,000

Warehouse Firni Road, Mundka Spoton 20,000

Warehouse NH-9, Mundka Finetech 2,00,000

Major Deals in NCR Delhi Ind. & Warehousing Market - 2018

Industrial and warehousing

Submarkets

Land rates in INR

Mn/acre

Industrial Rents

INR/sft/m

Warehousing Rents

INR/sft/m

Mundka 20 -60 20 -30 15 - 30

Alipur 25-50 18-25 13 - 20

Near Airport/ Dwarka 50 -100 20 - 30

Okhla / Mohan Cooperative 30 -100 30 - 50

NOIDA 390 - 395 35 - 40 16 - 30

Greater Noida 38-40 15-22 16-26

Faridabad 18-25 18 - 20

Gurgaon(Pataudi - Bilaspur) 18-22 10 - 18

Hasangarh 10 - 13

Kundali/Sonepat/ Barota 11 - 20

Palwal 15-20 13 -15

Ballabhgarh 16-18 20 - 22

Bhiwadi 35-40 15-17 15-17

Khushkhera 22-25 14-15 14-15

Neemrana 39-42 14-16 14-16

BENGALURUREAL ESTATE TRENDS

Bengaluru is known as the "Silicon

Valley of India” because of its role

as the nation's leading information

technology (IT) exporter. With an

economic growth of 10.3%,

Bangalore is the second fastest-

growing major metropolis in India.

Forbes considers Bangalore one of

"The Next Decade's Fastest-

Growing Cities“ as per its survey

carried out in the year 2010. It the

third most populous city and fifth

most populous urban

agglomeration in India.

Commercial Retail Ind.& Warehousing

Statistics

Area

(Metropolitan

Region

8,005 km2

(3,091 sq mi)

Population 10,576,167 (2013)

GDP (PPP) $110 billion

Bengaluru Commercial

Real Estate Trends

The city recorded an average rental

increase of 6% YoY in 2018, highest in

India. Vacancy remained stable at 10%.

Around 24.4 mn sq.ft of space is

expected to be added over 2019‐2021.

More than 60% of the total upcoming

space is concentrated in ORR and

Whitefield. Vacancy remaining anchored

to single digits

Besides Ecom, IT, ITES, the Co-

Working Space office requirement will

contribute to the demand commercial

office space in Bengaluru. Rental

prices will see northward movement in

2019 due to sustained demand.

Bengaluru remained the most preferred

investment destinationin terms of leasing

activity with total absorption of around 15

mn sq. ft in 2018. Outer Ring Road

submarket accounted for almost 60% of the

total Grade A leasing, followed by Suburban

East (25%) and Peripheral submarkets

(15%). The technology occupiers,

contributing 40% of the total demand

followed by the BFSI sector (25%), flexible

workspace operators (15%), the

engineering and manufacturing sector

(10%) and other sectors accounting for

10%.

A new supply of 11.8 mn square was added

to the city’s inventory in 2018.

21

Major Deals in Commercial Market - 2018

CLIENT Building Name Area (SF) Location Lease/ Sale

Uber RGA tech park 4,75,000 Sarjapur Road Lease

Unisys RGA tech park 4,00,000 Sarjapur Road Lease

Pay Pal RGA tech park 1,65,000 Sarjapur Road Lease

JP Morgan Embassy Tech Village 11,00,000 ORR Lease

We Work Embassy Tech Village 3,00,000 ORR Lease

CoWorks Purva Premiere 1,10,000 Residency Road Lease

HP Maruthi Concorde park 4,50,000 Electronic City Lease

Keystone SJR prime co towers 80,000 Koramangala Lease

Zynka logistics Vasvani presidio 18,000 ORR Kadubesanahalli Lease

Cowrks Salarpuria Arena 55,000 Hossur Road Main Road Lease

DXC Technology RGA tech park (SEZ) 20,000 Sarjapur Road Lease

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2014 2015 2016 2017 2018

Demand and Supply in Bengaluru commercial Market in mn sft

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Bengaluru Commercial Market Rental Trends in INR/sft/month

2016 2017 2018

Bengaluru Retail

Real Estate Trends

Hosur-Sarjapur Road has emerged as the

new retail destination and has gained

significant interest from retailers witnessing

high volume of transactions. Due to good

leasing activity and limited supply, overall

mall vacancy levels remained low at 11%.

The rentals have remained stable in all

major micro - markets.

Rental prices will largely remain

unchanged in 2019. International lifestyle

retailers and E-commerce demand will

continue to be the major demand drivers

in the Bengaluru commercial office

space.

Bengaluru saw a revival of retail demand in

the year 2017 with the absorption of

around 1.0 mn sq. ft. Of prime retail space.

Around 1.8 mn sq.ft of new retail space

was added in 2018. Additionally, a healthy

supply of over 3.88 mn SF in Bengaluru,

expected by the end of 2020.

Retailers from multiple categories such as

apparel, food and beverage (F&B), beauty,

travel, etc. are driving the demand in the

submarkets. The majority of leasing activity

in the malls was driven by e-commerce,

food & beverage and apparel retailers.

Bengaluru Retail Market Rental Trends in INR/sft/month

High Street 2014 2015 2016 2017 2018

MG Road 240 240 150-250 125 - 275 150-300

Brigade Road 325 310 175-350 175 - 350 150-400

Commercial Street 300 300 300 300 200-300

Indiranagar 100 feet Rd. 200 190 175-200 150 - 200 150-250

Jayanagar 255 255 150-250 150 - 250 150-250

Sampige Road, Malleswaram 120 120 125 125 125-150

Koramangala 80 ft Rd. 125 115 100-150 100 - 150 100-150

Vittal Mallay Rd. 280 270 200-300 150 - 300 150-300

New BEL Rd. 142 145 125-175 125 - 175 125-175

Marathahali Jn. 125 125 125 125 100-150

Kamanahalli Main Rd. 125 125 125-150 125 100-150

Malls

Koramangala 420 420 420 420 Full

Magrath Rd. 375 375 375 325 - 350 300-350

Cunningham Rd. 100 90 100 120 100-150

Mysore Rd. 75 65 100-125 100 - 125 100-200

Vittal Mallay Rd. 400 400 400-500 400-500 full

Whitefield 120 120 100-175 100 - 175 125-250

Rajarajeshwarinagar 90 80 100 100 125-400

Malleswaram 280 280 250-300 25-300 150-225

Bannerghatta Rd. 195 195 125-175 125 - 200 150-300

Major Deals in Bengaluru Retail Market - 2018

Property Location Tenant Square feet Lease/ Sale

RMZ Galleria Yelahanka Toys'Rus 10,000 Lease

Standalone off Commercial Street Koskii 12,000 Lease

Standalone SBD Mall of IMA 60,000 Lease

Bengaluru Industrial and

Warehousing Trends

Bengaluru’s warehousing clusters are

located along its chief peripheral nodes like

Tumkur Road (north-west), Old Madras

Road (east), Hosur Road (south) and

Mysore Road (south-west). The

warehousing clusters in the eastern and the

north-western corridors are home to large

occupiers from the e-commerce segment

such as Amazon, Flipkart, Myntra, Aditya

Birla, Madura Garments and Decathlon.

Bengaluru Industrial and warehousing

market will continue its robust

performance in the year 2019. Rentals

may appreciate owing to healthy

demand in certain micro-markets,

particularly in eastern and western part

of Bengaluru

Bengaluru Industrial and Warehousing

market is mainly driven by demands from E-

commerce players followed by third-party

logistics and FMCG firms. In a warehousing

segment e- retailers and e- commerce giants

have consolidated their presence in this

market due to availability of quality

warehouse at reasonable costs and relative

proximity to high-demand centers (such as

Hyderabad, Chennai, Cochin and Mangalore.

The total warehousing space requirement in

the city is estimated to be around 80 man sq.

ft. During the next two years while upcoming

supply is around 60 mm sq. ft. The

manufacturing sector is the biggest demand

drivers with absorption of 55 mn sq. ft

23

Bengaluru Industrial and Warehousing Trends

Industrial & warehousing

Submarkets

Land rates in INR

Cr/acre

Industrial Rents

INR/sft/month

Warehousing Rents

INR/sft/month

Narsapura 1.0 to 1.75 Crores 15 - 19 15-19

Bommasandra 4 to 6 Crores 20 - 28 18 - 27

Bidadi IDA 3 to 6 crores 15 - 20 15-20

Dabaspet 1 to 2 Crores 12 - 18 12 - 16

Harohalli 1.5 to 2.5 Crores 12 - 18 12 - 22

Peenya IDA 6 to 12 Crores 25 - 35 20 - 30

Attibele 2 to3 Crores 20-30 18 - 26

Nelamangala 1.2 to 2 Crores 13 -25 13 - 20

Hoskote 1 to 2 Crores 15-20 14-20

Significant Leasing Transactions in Industrial and warehousing Market 2018

Property Location Tenant Area

RKV Developers Attibele Aditya Birla 5,00,000 sft

RKV Developers Attibele Amazon 3,00,000 Sft

Prestige Group Narsapura Flipkart 2,25,000 Sft

Significant Project under construction Area Completion

Soukhya Road 2,50,000 sqft Jan- Feb

Jigani- Bommasandra 1,50,000 sqft feb- March

Hosur 2,00,000 sqft Jan- Feb

Makali - Nelamangala 6,00,000 sft * feb- March

Hoskote - Narsapur 500,000 sft * feb- March

* Total combined development

CHENNAI REAL ESTATE TRENDS

Chennai is known as the “Detroit of

India” for its automobile industry. It

is the fifth-largest city and fourth-

most populous metropolitan area in

the country. Chennai has a broad

industrial base in the automobile,

computer, technology, hardware

manufacturing and healthcare

sectors. The city is base to around

30 percent of India's automobile

industry and 40 percent of the auto

components industry. According to

the Confederation of Indian

Industry (CII), Chennai is estimated

to grow to a US$100–billion

economy, 2.5 times its present size,

by the year 2025.

Commercial Retail Ind.& Warehousing

Statistics

Area 1,189 km2

(459.07 sq mi)

Population

(Census 2011)

8,653,521

8,917,749

(Extended UA)

GDP (PPP) $78.6 billion

Chennai Commercial

Real Estate Trends

Rents have remained stable across micro

markets. Few submarkets may witness

slight appreciation due to rebound demand.

Co-working has emerged as a major

demand segment in Chennai office market

accounting almost for 20% of total space

demand. On an annual basis, flexible space

operators leased nearly 0.24 msf. And we

expect the momentum to continue in 2019.

The Chennai office market is expected to

continue its sustained demand in the

year 2019. IT & ITeS, e-commerce, Co-

working and manufacturing will continue

to be the major demand drivers in the

Chennai commercial office space.

Chennai saw total absorption of 3.1 mn sq. ft

in 2018. In percentage growth terms,

Chennai witnessed a 20% increase in office

absorption from last year with various

activities seen in demand for office space.

The SBD, PBD OMR and GST business

districts have seen the most transactions in

Chennai markets.

The market witnessed supply of around 5.8

mn sq.ft of Grade A office space. SEZ space

accounted for nearly 80% of the new supply

and half of the leasing activity this year.

Upcoming supply in the suburban and

peripheral markets of the city in 2019 will

cater to the future demand providing carried

options for expansion and consolidation.

25

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Demand and Supply trends in Chennai commercial Market in

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Average Rental Rates in Chennaiin INR / sq.ft/ month

2015 2016 2017 2018

Major Deals in Chennai Commercial Market - 2018

CLIENT Building Name Area (SF) Location Lease/ Sale

Siesta Hospitality Star city 24000 T Nagar Lease

Husqvarna Unipunch 6100 Ambattur Lease

Citi Bank Ramanujan IT City 62000 Taramani Lease

Mphasis DLF Cybercity 1, 41,000 Manapakkam Lease

Valeo CEE DEE YES Phase II 1,80,000 OMR Lease

Ensono Chennai One SEZ 32,000 Thoraipakkam Lease

Blackstone Group One India Bulls Park 1.9 million Ambattur Lease

Paragon Digital

ServiceCEE DEE YES 77,000 Pallikaranai Lease

Archipelago SKCL Tech Square 60,500 Guindy Lease

HDFC MD Towers 47,000 Vadapalani Lease

Yamaha AKDR Tower 34,000 OMR Lease

Star Vijay Kochar Jade 44,000 Guindy Lease

Chennai Retail

Real Estate Trends

Rentals show appreciation by 5% - 8% in

retail high streets. Mall rentals are likely to

remain stable with new leases expected to

close at prevailing rates and new malls

scheduled for completion in the next

quarter. Main street rentals are also

expected to remain largely stable in areas

of Adyar, T. Nagar, Purasawalkam and

Alwarpet.

Marina Mall in OMR which would be

operational by 3rd quarter of this year.

We expect retail segment to perform

well in 2019 owing to sustained space

demand.

Chennai witnessed the launch of 1-mn-sq-ft VR

Mall in Chennai in 2018 which revived the retail

transaction sector. In 2018 owing to sustain retail

demand. Chennai saw absorption of 1.5 mn sq.ft

of retail space in 2018. Increase in mall supply is

expected to intensify transaction activity owing to

a steady demand from retailers.

Significant leasing activities were noted in the

areas of Velachery and Mount Poonamallee road.

Demand for retail space in main streets remained

strong as international brands. Domestic retailers

in the F&B, Electronics and apparel segment

were keen on expanding their presence in other

submarkets such as Mogappiar, Kattupakkam,

Sholinganallur (OMR), Ambattur and Tambaram.

Chennai Retail Market Rental Trends in INR/sft/month

High Street Area 2015 2016 2017 2018

Nungambakkam High Road 150 150 - 175 150 - 180 150 – 200

Khadar Nawaz Khan Road 210 210 - 230 210 - 250 200 – 225

Cathedral Road - RK Salai 135 135 - 150 135 - 150 150 – 175

Usman Road - South 130 130 130 125-150

Usman Road - North 140 140 140 140

Adyar Main Road 170 170 170 150-175

Anna Nagar 2nd Avenue 130 130 130 - 150 130 – 150

Purusawakam High Road 120 120 120 125-150

Pondy Bazar 160 160 - 185 160 - 200 160 - 200

Velachery 100 100 120 - 150 120 - 150

Malls

Chennai - CBD I (Mall) 230 230 -260 230 -275 230 -275

Chennai - CBD II (Mall) 300 250 -300 250 -325 250 -325

Chennai - Western (Mall) 200 180 - 200 180 - 200 180 - 200

Chennai - South (Mall) 220 200 - 230 200 - 230 200 - 230

Major Deals in Chennai Retail Market - 2018

Property Location TenantSquare

feetLease/ Sale

Doubleton OMR Purple Food Company 4299 Lease

Nawazish K.N.K Road Cold Stone Creamery 1134 Lease

Gentle Tides ECRCold Stone Creamery

4,930 Lease

Pub Kodambakkam Off the Record 7000 Lease

Spectra OMR Ziss Foods 3200 Lease

Independent T.T.K Road Revoke Gym 8000 Lease

Independent Dr.Radhakrishnan Salai Helvetica 7300 Lease

Chennai Industrial and

Warehousing Trends

Chennai saw sustained activity in warehousing

and industrial segment. Singapore-based

Ascendas-Singbridge Group, through its logistics

and warehousing joint venture with First Space

Realty, has acquired two assets in Chennai.

The two assets include a greenfield project, a

piece of land in Oragadam, Chennai, for an

industrial and logistics park of 2.8 mn sq. ft and

an over 120-acre industrial park at

Periyapalayam, of which 1.2 mn sq. ft has

already been developed.

Chennai saw close to 2.0 mn sq. ft of leasing

Industrial and warehousing segment. Leading

occupiers leasing space during 2018 were e-

Commerce, engineering and manufacturing, and

3PL companies.

Rental values were largely stable during

2018. NH - 5 (Red Hills –

Gummidipoondi), Tada and

Sriperumbudur – Tiruvallur stretch

remained the most vibrant industrial and

warehousing market seeing an

appreciation of 8% - 12% year on year.

Demand for Grade A & B warehousing

have led to a rental appreciation in most

micro – markets. Manufacturing rents will

remain steady across submarkets.

Industrial and warehousing, demand

will continue to grow in along major

industrial and warehousing corridors

of Chennai in 2019.

Chennai Industrial and Warehousing Trends

Industrial and warehousing SubmarketsLand rates in

INR Mn/acre

Industrial Rents

INR/sft/month

Warehousing Rents

INR/sft/month

NH 4 - Sriperumbudur - Oragadam

SIPCOT15 – 30 27-32 25-30

Sriperumbudur – Tiruvallur 13-25 22-25 20 - 22

NH 5 - Gummidipoondi SIPCOT 8 - 10 18-20 15-18

NH 5 - Red Hills - Gummidipoondi 15 - 18 18-22 18-20

Tada 8 - 10

Ambattur 200-220 28-32 23-28

Poonamallee 45-65 28-32 25-30

Maraimalai 25-27 22-25

Major Deals in Chennai Ind. & Warehousing Market - 2018

Property Location Tenant Square feet

Stanalone Puchiathipedu Stellar Value 3,00,000

NDR Warehouse Puchiathipedu FSC 2,00,000

Standalone Bandikavanoor ITC 1,87,000

Standalone Mahindra World City Nexteer Autimotive 1,00,000

HYDERABADREAL ESTATE TRENDS

Hyderabad, the capital of the newly

formed state of Telangana is

historically known as the “City of

pearls”. With an output of US$74

billion, Hyderabad is the 5th

contributor to India's overall gross

domestic product. The city is home to

more than 1300 IT and ITES firms,

including global conglomerates such

as Microsoft, Google, Dell, Facebook,

and major Indian firms such as

Infosys, TCS, Polaris and Wipro. The

city and its suburbs contain the

highest number of special economic

zones of any Indian city.

Commercial Retail Ind.& Warehousing

Statistics

Area 7,257 km2

(2,802 sq mi)

Population

(Census 2011)

6,809,970

7,749,334

(Extended UA)

GDP (PPP) $75.2 billion

Hyderabad Commercial

Real Estate Trends

Due to sustained demand since last two

years, the rentals in most micro markets have

seen appreciation. Rentals in Madhapur and

Gachibowli have gone up by 10-13% y-o-y on

the back of robust occupier demand.

Emerging locations such as Kokapet and

Gachibowli – ORR extension has also seen

rentals breaching the INR 50 per SF per

month levels during the year. The IT/ITeS

sector continues to be the largest consumer

in the Hyderabad office space market with a

share of almost 70%

The Hyderabad office market is expected

to continue its sustained trends in the

year 2019

Hyderabad is to record the second-highest

absorption levels in 2018 with nearly 7.3 mn

sq ft of office space transacted, making it one

of leading investment destinations. The prime

office corridors of Hitech City and Gachibowli

continued to dominate in terms of space take-

up. Nearly 60% of the upcoming supply for

2019, has already been pre-leased reflecting

the strong business sentiment which is

translating into such robust demand.

Around 4.0 mn sq.ft of Grade A office space

was added to the Hyderabad commercial

market in 2017. A Large share of new

completions are witnessing furious pre-

leasing activity with most of the space

already pre-committed.

0

2

4

6

8

2014 2015 2016 2017 2018

Demand and Supply Trend in Hyderabad Commercial Market in

MN sft

Supply Demand

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Hyderabad Commercial Market Rental Trends in INR/sft/month

2015 2016 2017 2018

Major Deals in Commercial Market 2018

CLIENT Building Name Area (SFT) Location Lease/Sale

AWFIS N Heights 37,632 Hitec city Revenue Share

Ace Urban Infocity Limited Laxmi Infobahn 50,000 Kokapet Lease

Celkon Incor9 10,000 Kavuri Hills Lease

PWC Salarpuria Sattva 40,000 Hitec city Lease

Sanya Technologies Park View 12,500 Madhapur Lease

Table Space Western Aqua 100000 Hitec city Lease

State Street Corporation Salarpuria Sattva 200000 Hitec city Lease

Service Now Salarpuria Sattva 650000 Hitec city Lease

JP Morgan Salarpuria Sattva 850000 Hitec city Lease

Shure InfoTech RMZ- The Sky View 40000 Hitec city Lease

Infor RMZ- The Sky View 275000 Hitec city Lease

Eastmen chemicals RMZ- The Sky View 150000 Hitec city Lease

Clean Harbors RMZ- The Sky View 45000 Hitec city Lease

Facebook RMZ- The Sky View 300000 Hitec city Lease

F5 Networks RMZ- The Sky View 200000 Hitec city Lease

E&Y RMZ- The Sky View 90000 Hitec city Lease

Vsoft DSR Inspire 70000 Madhapur Lease

Conneqt Business Solutions Lala-1 Landmark 30000 RaniGanj Lease

Hyderabad Retail

Real Estate Trends

Vacancy levels reached 20% due to

availability of supply. Brands like Ritu Kumar,

Levis, Pepe Jeans, Fabindia, CK, Reliance

Trends and W. Have expanded footprint

during 2018. Emerging retail corridors in Film

Nagar, Nallagandla. Kompally, Boduppal and

Pocharam have seen leasing strengthening

this year and are slowly transforming to major

high streets.

We expect the upswing in retail

expansions to continue in 2019 on the

back of robust business sentiments and

continued infrastructure developments

across the city.

The Hyderabad retail market witnessed the

brisk transactions of around 1.1 mn sq.ft of

retail space. Around 2.3 mn sq, ft, of retail

space was added in 2018 with the addition of

two new malls– one in Kondapur (Sarath City

Capital) and the other in Erramanzil (L&T),

supplying nearly 1.8 msf of retail space.

Robust growth in office and residential markets

is driving retail activity across all main streets.

Rents in all malls in the city may see short term

correction due to oversupply. Main street rents

were also flat, amid healthy leasing activity and

sufficient availability of spaces.

Significant Leasing Transactions in Retail Market

Property Location Tenant Area

Individual Jubilee Hills Rd No.36 SUNON Furnitures 12500 Sft

Individual Madhapur V2 Retail Ltd 13503 Sft

Individual Mehdipatnam Neeru`s 15000 Sft

Individual Jubilee Hills Rd No.36 RITU KUMAR 4200 Sft

Individual Kukatpally CROMA 20000 Sft

Individual Banjara Hills #12 Happi Mobiles 2500 Sft

Individual Manikonda Sampoorna Super Market 8900 Sft

Individual Banjara Hills #12 Spectra Sun Glasses 4000 Sft

Individual Jubilee Hills #.36 Mugda Studio 3500 Sft

Individual Boduppal Heritage 2500 Sft

Individual Jubilee Hills - 36 Mochi 2800 Sft

Individual SD Road Zudio 5200 Sft

Individual Banjara Hills - 1 Lock N Escape 5000 Sft

Hyderabad Retail Market Rental Trends in INR/sft/month

High Street 2014 2015 2016 2017 2018

M.G Road 110 110 110 115 110

S.P Road/ Begumpet 110 110 110 110 110

Raj Bhavan Road/ Somajiguda 90 90 90 100 100

Banjara Hills 130 130 130 125 120

Abids/ Koti 110 110 110 110 110

Himayathnagar 135 135 135 135 130

Punjagutta 155 155 155 155 155

Ameerpet 125 125 125 120 120

Jubilee Hills 130 125 125 120 120

Kukatpally 140 140 140 130 125

A.S.Rao Nagar 120 120 120 100 120

Madhapur 100 100 100 110 100

Malls

NTR Gardens 125 125 125 120 120

Himayathnagar 150 150 150 140 140

Banjara Hills/ Jubilee Hills 160 160 160 160 155

Madhapur 140 140 140 145 145

Punjagutta 140 140 140 140 140

Somajiguda 130 130 130 130 130

Kukatpally 100 100 100 100 100

Hyderabad Industrial and

Warehousing Trends

Rents have remained stable across micro

markets. Shamshabad has emerged as a

preferred e-commerce destination due to

proximity to airport. The Medchal area saw

appreciation of rentals due to steady

demand and sustained leasing activities.

Industrial and warehousing, demand will

continue to grow in along major industrial

and warehousing corridors of Hyderabad

GST reforms and political stability have

triggered off growth in Hyderabad

Industrial and warehousing markets

and we expect this trend to continue in

2019

The Hyderabad Industrial and Warehousing

market witnessed a strong increase in leasing

activity in 2018 with transaction of around 1.5

mn sq.ft. Besides a few large scale

transactions, the leasing activity during 2018

was driven by small to medium sized space

take-up by 3PL, FMCG, e-Commerce and

pharmaceutical companies. The majority of

the leasing activity was concentrated across

independent warehouses.

The major industrial and warehousing

corridors in Hyderabad are Shamshabad,

Mahabubnagar and Medchal. These areas

have the presence of almost all major FMCG

and e-retail players.

31

Industrial and warehousing

Submarkets

Land rates in INR

Mn/acre

Industrial Rents

INR/sft/month

Warehousing Rents

INR/sft/month

Jeedimetla 25-35 12 to 14 12 to 14

Gunda-Pochampally 20-30 12 to 14 12 to 14

Kandlakoya 20-30 12 to 14 10 to 12

Kompally 30-40 12 to 14 14 to 16

Bowrampet 15-30 10 to 12 10 to 12

Gajularamaram 15-30 10 to 12 10 to 12

Medchal 35-40 12 to 14 12 to 14

Turkapally 30-35 12 to 14 12 to 14

Dandupally 25-30 10 to 12 10 to 12

KOLKATAREAL ESTATE TRENDS

Commercial Retail Ind.& Warehousing

Statistics

Area 1,886.67 km2

(728.45 sq mi)

Population

(Census 2011)

14,112,536

14,617,882

(Extended UA)

GDP (PPP) $150.1 billion

Kolkata, widely regarded as the "cultural

capital" of India, enjoys a strong,

diversified economy. As of 2017, estimates

indicate that Kolkata Metropolitan Area's

economy have ranged from $60 to $150

billion (GDP adjusted for purchasing power

parity) making it third most-productive

metropolitan area in India,

after Mumbai and Delhi. The City is a perfect

blend of economic strength and dynamism,

with a strong consumer base, vibrant

industry, large talent pool, transparent

governance and social & physical

infrastructure development. The city is

home to many industrial units operated by

large public and private sector corporations.

Major sectors include steel, heavy

engineering, mining and minerals,

pharmaceuticals, food processing,

agriculture, electronics and textiles.

Prominent companies headquartered in

Kolkata are ITC Limited, Exide Industries,

Eveready Industries, RP – Sanjiv Goenka

Group, Ambuja Neotia Group, Emami, Rupa

Industries, Lux Innerwear, Berger Paints,

Birla Corporation, Manyavar, SREI, Peerless

Group, Coal India Limited, Uco Bank,

Allahabad Bank, Bandhan Bank and

Damodar Valley Corporation to name a few.

Kolkata Commercial

Real Estate Trends

The vacancy level remained high at 35% due to

surge of supply. Considering the moderate

demand and increase in enquiry level in the

market, net absorption is expected to improve

going forward. With more than 1 msf of

development pipeline scheduled for completion

in H1 2019 in peripheral areas, a short-term

jump in vacancy is likely. Rents remain stable in

most micro markets and are likely to remain

stable due to increase in supply in 2019.

We anticipate that the rents will remain at the

same levels in CBD locations, however SBD

like Salt Lake and New Town may witness

correction due to the consistent increase in

supply of Grade A office spaces.

Year 2018 saw robust activity in Kolkata

commercial markets with healthy

absorption of more than 1 million sq ft. Salt

Lake submarket continues to be the major

investment market in Kolkata accounting

for 60% of the total Grade A net absorption,

followed by Rajarhat (25%). The IT-BPM

sector led transaction activity, with a share

of 65% in overall leasing.

The city saw supply of around 3.2 mn sq. ft

of grade A office space in 2018. The supply

is primarily concentrated in the peripheral

submarkets of Rajarhat and Salt Lake. IT

developments constitute about 85% of this

new supply.

33

Major Deals in Kolkata Commercial Market - 2018

Property Location Client Area (SF) Type

RDB Boulevard Sec V Spaces 43000 Lease

Heritage Central AJC Bose Road AWFIS 17000Revenue

sharing

DLF IT Park I Newtown, Rajarhat Hiland Software 13400 Lease

DLF IT Park I Newtown, Rajarhat Sify Technology 42000 Lease

Biowonder EM Bypass Anand Rathi 12000 Lease

DLF IT Park II Rajarhat Next Gen 17000 Lease

DLF IT Park II Rajarhat Medfin 13000Lease-

expansion

Candor Tech Space Newtown Capgemini 45000 Lease

Ecocentre Sec V ACC Cement 15962 Lease

Eco Centre Sec VAPJ Business

Centre16000 Lease

Bombay Mutual Building BBD Bag Hemadri Chemical 15000 Lease

Godrej Waterside Sec V Tega Industries 40000 Lease

PS Srijan Techpark Sec V BYJU 16000 Lease

Avani Signature Park Street Federal Bank 20000 Lease

Candor Tech Space Newtown Accenture 35000 Lease

Millenium City Sec V ZTE 12000 Lease

0

0.5

1

1.5

2

2.5

3

3.5

4

2014 2015 2016 2017 2018

Demand and Supply Trends in Kolkata Commercial Market in Mn sft

Supply Demand

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Kolkata Commercial Market Rental Trends in INR/sft/month

2015 2016 2017 2018

Kolkata Retail

Real Estate TrendsMost transactions on high streets were by retailers

belonging to the apparel, jewellery and QSR

segments. Conversion of Tram Depot plots into Retail

& Mixed use project particularly in areas such

Belgachia, Tollygunge, Galiff Street, Kalighat,

Kidderpore etc are reviving the retail segment.

Extreme aggressive expansion nature of all the

national level super market chains with their smaller

formats (1,500 to 2,000 sq ft) are the demand drivers

in Kolkata.

The healthy Retail space transaction is expected to

continue in the year 2019. Demand for high street

properties, neighbourhood Mall will drive the retail

markets in Kolkata.

Kolkata Retail markets continue to perform

well in 2018 keeping the momentum that

started in 2017. Kolkata that witnessed 40%

rise in transaction activity leasing of around

0.85mn sq. ft of retail space. Kolkata market

saw complete revamp of South City Mall , the

largest shopping mall in Kolkata , on its 10th

year of operation with introduction of brands

like ZARA , FOREVER 21 , SEPHORA etc.

FORUM GROUP is planning to come up with

the largest shopping mall in Kolkata on EM

Bypass area. Expected size is approx 12

lakhs sq. ft. About 4-5 Neighborhood Centre

Shopping Malls with average size of 1 lakhs

to 1.5 lakhs sq. ft would be started with its

construction in 2019.

Average Retail Rentals in Kolkata in INR/ sft/ month

High Street 2015 2016 2017 2018

Kankurgachi 200 180 -200 180 -200 180 -200

VIP Road 175 150 -175 150 -175 150 -175

Hatibagan 200 180 -200 160 - 175 160 - 175

Shyambazar 200 180-200 150-170 150-170

Theatre Road 230 250-300 250-300 250-300

Gariahat 280 250-280 250-280 250-280

Elgin Road Zone 285 250-300 250-300 250-300

Lindsey Street 285 250 250 250

Camac Street 285 250-300 250 250

Park Street 350 300-350 300-350 300-350

Malls

Park Circus 600 350-400 350-400 350-400

South Kolkata 300 250-350 250-350 250-350

East Kolkata 410 – 420 200-250 250-400 250-400

Elgin Road Zone 450 – 460 350-400 350-400 350-400

New Town, Rajarhat 110 – 115 175-200 200-225 200-225

Significant Transactions in Retail Market 2018

Property Location Client Sq. ft Type

Commercial Project Behala Spencers 20000 approx Lease

PS Qubes Newtown Westside 20000 approx Lease

Standalone Madhyamgram Reliance Trends 10000 Lease

Commercial Project Bura Bazar Reliance Trends 12000 Lease

Standalone BT Road Reliance Trends 9000 Lease

Standalone Sodepur Reliance-Trends 10000 Lease

Standalone Newtown Reliance-Smart 11000 Lease

Standalone VIP Road Reliance-Smart 12000 Lease

Standalone VIP Road MP Jewellers 10000 Outright

Standalone Baruipur M Baazar-prime Fashion 8500 Lease

Standalone Uluberia M Baazar-prime Fashion 9000 Lease

Standalone Behala, DH Road FBB 16000 Lease

Standalone Landsdown Croma 14000 Lease

Standalone Sec V, Salt Lake Croma 9000 Lease

Standalone Howrah Croma 8000 Lease

Standalone Jadavpur, Kolkata City Life 11000 approx. Lease

Standalone Rajdanga Main Road City Life 8000 approx. Lease

City Centre 2, Newtown, Rajarhat Barbeque Nation 8500 approx. Lease

Kolkata Industrial and

Warehousing Trends

Kolkata industrial and warehousing market

witnessed an appreciation of 5% -10% in most

micro markets due to increased demand from

warehousing developers/ landlords.The micro

market of Dankuni, Dhulagarh, Sankrail and

Uluberia along NH-6 witnessed close to 70% of

overall transaction activity. Domestic

companies from the electronics, 3PL, e-

Commerce and media sectors were the major

occupiers of space.

The state which had 11.6 msf of warehousing

space in the beginning of the year is set to go

up by CAGR 28% with supply moving upto

22msf by 2020.

35

SubmarketsLand rates in INR per

acre

Warehousing Rents

INR/sft/month

Dankuni – Delhi Road 3 Cr – 4.5 Cr 19 - 25

Dhulagarh – Bombay Road 2.1 Cr – 4 Cr 17 - 23

Taratala – Maheshtala 6 Cr – 9 Cr 17 – 24

Madhyamgram, Barasat 1.8 Cr – 3 Cr 18 – 25

Significant Leasing Transactions in Industrial and Warehousing 2018

Property Location Tenant Area in sq. ft Lease / Sale

Srijan Industrial

Logistics ParkBombay Road Gold Medal Approx. 16,000 Outright

Srijan Industrial

Logistics ParkBombay Road Mittal Technopack Approx. 60,000 Outright

Srijan Industrial

Logistics ParkBombay Road R S Enterprise Approx. 12,000 Outright

Srijan Industrial

Logistics ParkBombay Road Arvind Garments Approx.. 7,000 Outright

Bombay Road Bombay Road Pepsico 1 ,00,000 Lease

Aarjavv Industrial Park Delhi Road Amazon 1,50,000 Lease

Abakash Industrial

ParkBasanti Highway

Prabhat Khabar

(News Paper)30,000 Lease

Sankrail Industrial

ParkBombay Road Great Eastern 65,000 Lease

Individual building Bombay Road Flipkart (BTS) 8,00,000 Lease

Individual building Taratala Bata 25,000 Lease

Individual building Dhulagarh Britannia 80,000 Lease

Individual building Sankrail Reliance 50000 Lease

Individual building DankuniUltra Tech

Cement35000 Lease

Individual building Dhulagarh CEAT Tyres 100000 Lease

The implementation of GST has made way

for cost and operationally efficient

‘Hub&Spoke Model’ of warehousing and is

shifting from the inefficient, low quality

redundant warehouses to large box and

good quality Grade A warehouses. INR 4300

Cr Investment in Warehouses Estimated for

WB by 2020. however, close to 4 msf. of

space is currently under construction and is

expected to be completed by 2019.

Industrial and warehousing demand will

continue to grow in along major industrial

and warehousing corridors of Kolkata in

2019

Kolkata Land Transactions35

Kolkata Investment deals

Significant Transactions in Land - 2018

Client Location Tenant Acre Type

Merlin Group Salt lake, Kolkata NA 1.06 JV

Ganpati Marbles DH Road, Kolkata NA 1.57 Outright

Realmark Realty Pvt Ltd NSC Bose Road, Kolkata NA 0.57 JV

Salarpuria Group and Eden Group Kodalia, Kolkata NA 10 Outright

Rajat Group Newtown, Kolkata NA 3.3 JV

Primarc Group Bye pass, Kolkata NA 0.94 JV

PS Group Chowringhee , Kolkata NA 0.40 JV

Ambuja GroupCanal South Road,

KolkataNA 7 DM

Shaporji Newtown NA 4 JV

Primarc Beleghata NA 3.04 JV

Significant Transactions in Investment - 2018

Property Location Clients/Brands Area (sqft) Type

D H Road Kolkata Mall 275000 Outright

Rangoli Mall Howrah Banquet 48000 Outright

Ideal Group Khanna Pantaloons 29489 ROI

Ideal Group D H Road Reliance Trend 21682 ROI

Sugam Group Kamalgazi Brand Factory 20796 ROI

Uniworld Rajarhat Spencer’s 20000 ROI

Clubtown Heights B T Road Max 9956 ROI

Onex Realty Madhyamgram City Life 9609 ROI

Sector V Kolkata Restaurant 4074 ROI

Orbit Group Shakespeare Sarani Ethos 3855 ROI

Individual Elgin Road DHI 2555 ROI

PUNE REAL ESTATE TRENDS

Pune is considered the cultural

capital of Maharashtra. Pune is one

of the fastest growing cities in the

Asia-Pacific region. The ‘Mercer 2016

Quality of Living rankings’ evaluated

local living conditions in more than

440 cities around the world where

Pune ranked at 144, second in India

after Hyderabad (139). It also

highlights Pune among evolving

business centers and emerging 9

cities around the world with citation

"Hosts IT and automotive

companies“.

Commercial Retail Ind.& Warehousing

Statistics

Area 7,256.46 km2

(2,801.73 sq mi)

Population 7,276,000

GDP (PPP) $69 billion

Pune Commercial

Real Estate Trends

The rental values are likely to strengthen

due to sustained demand for quality

spaces with average growth of 3% - 4% y-

o-y. The key micromarkets of Baner, Bund

Garden and Kalyani Nagar are likely to

witness the fastest growth. The vacancy

levels will remain at 6% - 8% in all mico-

markets owning to steady demand

Going forward, we expect 2019 to be in

a similar situation with rentals are

expected to appreciate further due to

supply constraints. Banking and

Financial Services Institutions (BFSI),

flexible workspace operators and

engineering & manufacturing

companies will continue to be market

drivers.

Leasing activities saw growth of 38% with total

transaction of 5.4 mn sq.ft of office space.

Pune witnessed supply of 5.7 mn sq.ft of office

space in 2018. About 13 mn sq ft (1.2 mn sq

m) of new supply, an increase of 29%

citywide, is due to appear in 2019-2021. Pre-

committed by IT-BPM occupiers dominated

the market.

More than half of the new supply, 56%,

constitutes non-IT developments, coming

onstream with rental values higher than the

current market average, resulting to increase

in average rents for most micromarkets in the

city. The majority of the planned supply is

concentrated in three micromarkets namely

Kharadi (34%), Baner (27%) and Airport

Road/Pune Station (20%)

37

Major Deals in Commercial Market - 2018

CLIENT Location Area (SF) Lease/Sale

Barclays Kharadi 5,62,881 Lease

Ensono Tech Hinjewadi 33,496 Lease

Akzo Global Hinjewadi 31,973 Lease

Rocket Software Yerwada 29,365 Lease

TVS Electronic Kharadi 17,150 Lease

AXA Phursungi 16,545 Lease

Sapience Analytics F C Road 13,877 Lease

Sydac Simulation Hinjewadi 12,200 Lease

True Sparrow Hadapsar 11,133 Lease

FIGMD India Bavdhan 1,41,700 Lease

V Construct Magarpatta 63,000 Lease

Ultratech Cement Hinjewadi 50,000 Lease

Druva Software SB Road 42,000 Lease

0

1

2

3

4

5

6

2014 2015 2016 2017 2018

Demand - Supply Trends in Pune Commercial Market in MN sft

Supply Demand

0

20

40

60

80

100

120

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Pune Commercial Market Rental Trends in INR/sft/month

2014 2015 2016 2017 2018

Pune Retail

Real Estate Trends

Amidst no fresh mall supply, vacancy rate

declined to 9.3%. Upcoming Supply of 0.25

msf will bring more space options to the

market in 2019. Rentals remained stable in

most micro-markets except Pavillion and

Westend Mall, which saw 13% y-o-y

appreciation. Rentals are expected to grow

marginally across malls in the forthcoming

quarter owing to low vacancy levels

Demand for high street properties will

drive the retail markets in Pune. In terms

of transactions, retail market will see

robust leasing activity in 2019 due to

continued interest from lifestyle retailers.

Pune saw leasing of around 0.5 mn sq.ft of retail

space while supply remains historically low at

only 0.2 mn sq.ft with no major completion.

Healthy leasing activity was seen in Phoenix,

Pavillion and Amanora malls located on Nagar

road, S.B road and Hadapsar respectively

Demand from International retailers are driving

demand for retail space in Pune market. The

leasing activity in malls was dominated by food

& beverage (F&B) retailers and lifestyle brands

such as Forever21, Onitsuka Tiger, Ximivogue,

Westside and Sephora expanding their footprint

in the city. The moderate supply chain of few

F&B outlets witnessed on Koregoan Park main

street.

Major Deals in Retail Market 2018

CLIENT Location Area ( SF) Lease/ SaleGrandma's Café Koregaon Park 3,500 Lease

JD Café Camp 2,500 Lease

Raymonds Laxmi Road 4,500 Lease

Café Peter Donuts Apte Road 2,500 Lease

Vijay Sales Bhosari 34,000 Sale

Vijay Sales Baner 4,000 Sale

Mens avenue , Kajree, Kids Avenue Baner 10,000 Sale

Star Bazaar Baner Pashan Link Road 6,000 Lease

Star Bazaar Swargate 6,000 Lease

Chandu Kaka Saraf Satara Road 2,000 Lease

Chandu Kaka Saraf Kothrud 2,000 Lease

Isuzu cars S B Road 4,000 Lease

Big Bazaar Kumar Pacific Mall - Swargate 20,000 Lease

Kora Dhole Patil Road 2,500 Lease

Kerala Café Baner 2,000 Lease

Penthouze Royal Heritage Mall- NIBM Road 5,000 Lease

Cinnamon Royal Heritage Mall - NIBM Road 5,000 Lease

Megamart Kumar Pacific Mall - Swargate 10,000 Lease

Pune Retail Market Rental Trends in INR/sft/month

High Street 2015 2016 2017 2018

MG Road 300 - 320 250 - 275 300 - 320 300 - 325

JM Road 350 - 375 265 - 290 325 - 370 325 - 375

FC Road 220 - 260 220 - 260 220 - 260 220 - 260

Koregaon Park 120 - 160 220 - 250 190 - 220 190 - 225

Aundh 150 - 185 180 - 200 150 - 180 150 - 190

Bund Garden Road 120 - 140 180 - 200 140 - 170 140 - 175

Malls

Camp 150 175 215 220

Koregaon Park 98 110 135 140

Nagar Road 150 165 180 180

Hadapsar 130 150 180 185

PCMC 180 180 190 190

Pune Industrial and

Warehousing Trends

Chakan, Sanaswadi and Hinjewadi

continue to be the most preferred micro

markets for investment in warehousing.

Rental values continued to remain stable

across micro-markets. Notable leasing

transactions included leasing by JCB and

Pokhalkar Engg.

Industrial and warehousing, demand

will continue to grow in along major

industrial and warehousing corridors

of Pune in 2019 particularly along

Chakan -Talegaon area.

Pune witnessed strong demand for

warehousing space during 2018 driven by

engineering and manufacturing sector

companies and 3PL operators. Pune has

emerged as the most vibrant industrial and

warehousing market in Western India. The

large consumer and manufacturing base and

affordable prices have helped Pune become a

major warehousing location.

Pune’s total requirement for warehousing

space is estimated to be 4.5 mn sq ft, of which

more than 80% or 3.6 mn sq ft is from the

manufacturing sector.

39

Major Deals in Industrial and Warehousing Market 2018

CLIENT Location Area (SF) Lease/ sale

Rossenberg Chakan 1,00,000 Lease

IKEA Chakan 3,00,000 Outright

Belden Chakan 50,000 Lease

Thyssenkrupp Chakan 1,20,000 BTS lease

BMW India chakan 2,50,000 Lease WH

Faurecia chakan 2,50,000 Lease Assembly / Mfg

India Kawasaki Motors chakan 1,45,000 Lease Assembly / Mfg

Mahindra Logistics chakan 1,00,000 Lease WH

Pune Industrial and Warehousing Trends

Industrial and

warehousing Submarkets

Land rates in INR

Mn/acre

Industrial & Warehouse

Rentals in sq.ft/month

Industrial & Warehouse

Rentals in sq.ft/month

Talegaon 1.8-2.2 Cr/acre 20 -22 22 - 25

Chakan 1.8 -2.5 Cr/ acre 24 -30 24 -30

Pimpri Chinchwad 8-10 Cr/acre 25-35 25-35

Pirangut 3 Cr/acre 18-22 18-22

Hinjewadi 6-7 Cr/acre 25-35 32-40

Lonikand 2 Cr/ acre 14-20 14-20

Sanaswadi 2.5 Cr/acre 14-20 18-22

Ranjangaon 1.5- 2 Cr/acre 18-22 18-22

Khed City 1.7 Cr/acre 17-26 17-26

Shirwal 1.5 Cr/acre 12--16 15-20

Wagholi 3.5 Cr/acre 18-25 18-25

AHMEDABAD REAL ESTATE TRENDS

Ahmedabad has emerged as an

important economic and industrial hub

in India. It is the second largest

producer of cotton in India, and its

stock exchange is the country's

second oldest. Two of the biggest

pharmaceutical companies of India —

Zydus Cadila and Torrent

Pharmaceuticals – are based in the

city. The Nirma group of industries,

which runs a large number of detergent

and chemical industrial units, has its

corporate headquarters in the city. The

city also houses the corporate

headquarters of the Adani Group, a

multinational trading and infrastructure

development company.

Commercial Retail Ind.& Warehousing

Statistics

Area 464.16 km2

(179.21 sq mi)

Population 5,633,927

GDP (PPP) $68 billion

Ahmedabad Commercial

Real Estate Trends

Rentals remained stable in most micro

markets with price correction in few locations

due to oversupply scenario, especially in the

submarkets of S.G. Highway and Satellite/

Prahladnagar. Demand for IT-BPM, financial

services, professional services firms,

coworking operators and engineering

/manufacturing and industrial firms to remain

active in the city’s office market. SG Highway

submarket is likely to remain most attractive

micro-market

We Expect 2019 to be positive for the

commercial market with good leasing

demand & addition of new supply infusion.

Rentals are expected to decline further

due to demand - supply mismatch.

Ahmedabad real estate saw a limited

transaction of around 1.03 mn sq. ft of

commercial space in the year 2018. The

market remained sluggish in terms of

transaction activities. Grade A leasing

activity was dominated by the banking,

financial services and insurance (BFSI)

sector with a 50% share. The majority of the

leasing activity was concentrated in the SBD

of S.G. Highway (55%).

Ahmedabad witnessed supply of approx. 3.1

mn sq. ft, in 2018. The supply addition,

coupled with moderate leasing activity, led

to an increase in Grade A vacancy levels,

which was noted at 35%.

41

Major Deals in Ahmedabad Commercial Market - 2018

CLIENT Building Name Location Area (SFT) Lease/ Sale

Home Credit Emerald Mercedes C G Road 36000 Lease

Apcer Pharma Mondeal Heights SG Highway 54000 Lease

Lending Kart The First Keshav Baug 66000 Lease

IMS Test Prep Indraprasth Busniess Park Makarba 75000 Lease

Rao Overseas Individual Shilaj 20000 Sale

Rays TechServ Pvt. Ltd. Shivalik Business Park Bodakdev 4500 Lease

Molecule Labs Iconic Tower SG Highway 4000 Lease

Swiggy Venus Atlantis Prahladnagar 5200 Lease

Swiggy Individual Rajkot 3250 Lease

Naukri.com Iscon Elegance SG Highway 3500 Lease

Netralok Golden Icon Shyamal 6500 Outright

IMS Test Prep Indraprasth Business Park Makarba 75000 Lease

Concord Biotech Mondeal Heights SG Highway 27000 Lease

Lendingkart The First Vastrapur 18000 Lease

DevX The First Vastrapur 16000 Lease

E&Y Privilon Ambli-Bopal 30000 Lease

Future Generali BVR Ashram Road 6000 Lease

Cars 24 BVR Ashram Road 11500 Lease

Piramal Housing Finance WestGate SG Highway 12000 Lease

0

1

2

3

4

2014 2015 2016 2017 2018

Demand - Supply Trends of Ahmedabad Commercial Market

in Mn sft

Supply Demand

0

10

20

30

40

50

2015 2016 2017 2018

Average Commercial Rental Rates in Ahmedabad in INR / sq.ft/month

C.G Road Ashram Road

S.G. Highway Satellite/ Prahladnagar

Ahmedabad Retail

Real Estate Trends

Owning to steady demand and limited

supply in majority submarkets, the rents

in the main streets of S.G. Highway and

Prahlad Nagar increased by 5% and 7%

respectively. Retail leasing at main

streets remains more robust compared

to males. SG Highway and Sindhu

Bhavan Road, continue to remain

attractive locations for retailers.

Retail transactions are expected to

remain healthy in 2019. Demand for

high street properties will drive the

retail markets in Ahmedabad.

Ahmedabad retail real estate saw healthy

transaction of around 0.85 mn sq. ft in the year

2018. High street at S.G. Highway witnessed robust

leasing activity during the year, primarily by retailers

from the apparel category.

On the supply front, the market witnessed supply of

around 0.3 mn sq. ft of retail space. No new supply

of malls is expected in 2019 with retailers being

cautious in their expansion plans and developers

deferring completions due to the listless leasing

levels. Approximately 3.3 msf of upcoming mall

supply is expected by by 2021. Due to robust

transaction activities, the vacancy rate declined to

20%.

Ahmedabad Retail Market Rental Trends in INR/sft/month

High Street 2015 2016 2017 2018

CG Road 125-150 125-150 130 - 160 130 - 160

S.G Highway 80-120 80-120 90 - 130 90 - 130

Satellite 80-110 80-110 90 - 120 90 - 120

Ashram Road 80-110 80-110 100 - 120 100 - 120

Law Garden 100-120 100-120 100-120 100-120

Prahladnagar 80-110 80-110 80-115 80-115

Vastrapur 90-130 90-130 90-135 90-135

Drive in Road 80-120 80-120 80-125 80-125

Malls

Alphaone Mall, Vastrapur 120 -140 120 -140 120 -145 120 -145

Gulmohar Mall, Iscon Circle 60 -80 60 -80 80 - 100 80 - 100

Himalaya Mall, Drive in Road 100-150 100-150 100-150 100-150

CG Square, CG Road 100-130 100-130 100-130 100-130

Significant Transactions in Retail Market - 2018

Client Building Name Location Area Lease/Sale

Rajhans Multiplex Ved Arcade Vastral 50000 Lease

Osia Dev Arc SG road 40000 Lease

Star Bazar Celebrity City Centre South Bopal 10000 Lease

PVR Multiplex Swagat Gandhinagar 40000 Lease

INOX New Building Maninagar 70000 Lease

Pantaloons New Building Maninagar 30000 Lease

Fun Cinemas The Retail Park Bopal 30000 Lease

Fun Cinemas Rajyash Rise Vasna 30000 Lease

Reliance Smart Multiple Outlets Paldi, Sciencecity 12000 Lease

White Crow Navratna Sindhubhawan 14000 Lease

Kia Motors Westgate Business Bay S G Highway 10000 Lease

Gambol The Capital Science city 15000 Lease

Big Baazar Ahmedabad One Mall Vastrapur 25000 Lease

Go- Sport Ahmedabad One Mall Vastrapur 15000 Lease

Marks N Spencer CG Square Mall C G Road 15000 Lease

H &M CG Square Mall C G Road 15000 Lease

Oyo rooms Rajyash Rise Vasna 34000 Lease

Java Bikes The Address Vijay Cross Roads 4000 Lease

US Pizza Maple Trade Surdhara Circle 5000 Lease

Sam’s Pizza Maple Trade Surdhara Circle 5000 Lease

Reliance Mart Yash Arian Gurukul 15000 Lease

Reliance Mart Yash Pinnacle Paldi 15000 Lease

MI Store Campus Corner Prahladnagar 2500 Lease

Jockey Individual SindhuBhavan 14000 Lease

Kotak Bank Stellar SindhuBhavan 2500 Lease

Paridhan (Garment) Stellar SindhuBhavan 3000 Lease

LiverPool Stellar SindhuBhavan 2500 Lease

Marker Mallabar Gota 15000 Lease

Reliance Digital Dev Aurum Prahladnagar 11000 Lease

Indus Bank Ratna High Naranpura 3000 Lease

Ahmedabad Industrial and

Warehousing Trends41

Major Deals in Ahmedabad Commercial Market - 2018

Client Type Location Area ( sq ft) Transaction Type

Godrej Warehouse Changodar 150000 Lease

Udaan Warehouse Aslali 17000 Lease

Udaan Warehouse Bavla 130000 Lease

Arvind Mill Warehouse Moraiya 200000 Lease

Hyundai Warehouse Sanathal 22000 Lease

Amazon Warehouse Aslali 40000 Lease

Paytm Warehouse Moraiya 100000 Lease

Reliance E- commerce Warehouse Matoda 100000 Lease

Sarmico Warehouse Moraiya 40000 Lease

Prominent lessors in Kheda include D-Mart

and HUL who leased 400,000 sf and

250,000 sf respectively. Rentals in most

other submarkets remained stable, but

micro markets such as Aslali and Kheda

show appreciation of 4% - 12% Y-O-Y

Industrial and warehousing, demand will

remain robust in major industrial and

warehousing corridors of Ahmedabad in

2017 particularly along Aslali, Sanand,

Bavla and Changodar corridors.

Ahmedabad has a very strong industrial and

manufacturing base. Major markets are

Sanand, Bavla and Changodar along NH 8A,

Aslali and Kheda. Aslali, located on the

Ahmedabad – Mumbai National Highway,

witnessed the bulk of leasing activity. Close to

1.2 mn sq. ft of industrial and warehousing

space was completed in Ahmedabad market.

Warehousing demand was driven by

consumer goods sectors, as well as e-

commerce and automobile.

Ahmedabad Industrial and Warehousing Trends

Industrial and warehousing

Submarkets

Land rates in INR Mn/per

Sq.yard Sale

Industrial Rents

INR/sft/month

Warehousing Rents

INR/sft/month

Sanand 3000-12000 15 -17 15 -17

Changodar 7500-30000 18-20 18-20

Aslali 5000-25000 15-17 15-17

Kheda 4500-7000 13 -15 13 -15

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